October 18, 2010

The goal of the game is to make the most profit, which of course is total revenues minus total cost. For each tower, each inch up to 4 inches is worth $1000, and every inch above 4 inches is worth $2000. The variable costs are marshmallows ($50), and toothpicks ($100). Each group has fixed costs of $1000, which do not change with output. Bonuses are given as well for being able to hold piece of paper for 5 seconds, and to be able to stand straight for 3 seconds. The group right below this won, with a profit of $12,300. Congrats!!

Well built tower below, very high revenue, but also high variable costs.This one looks tasty. Unfortunately, not a winner.Another good effort.High marshmallow content, also high variable cost.A great tower, but lots of variable costs.

Creative Destruction in action... a robot takes another job. This time it is atthe hair salon. One thing that the video doesn't elaborate on is how the robotis actually scanning the user's head shape in three dimensions to figure out just the right amount of pressure to apply, and it will use that shape to remember who you are and what shampoo and massage settings you like.

September 21, 2010

As you can see below, (click to enlarge) North Dakota has the country's best unemployment rate (3.6%). Check out the full list here. This is in part due to record oil production of 321,000 barrels per day.

April 22, 2010

The Iceland volcano eruption has shown us how inter-connected the global economy is. From flowers in Africa to Japanese flowers, the impact has been felt around the globe. Here are some excerpts from CBS News.

"While the volcanic ash cloud covering parts of Europe continues to wreak havoc for airlines - costing the industry more than $1 billion as of Monday - grounding most of the continent's air travel for several days has had a ripple effect extending far beyond Europe's borders.

The following is a collection of international anecdotes demonstrating how the ash cloud has done more than hit airlines' bottom lines and inconvenienced air travelers.• The lack of refrigeration facilities at the airport in capital of the West African nation of Ghana has been a big blow to pineapple and pawpaw farmers who sell to Europe because of the lack of flights. As of Tuesday, no cargo flights have taken off yet.

• In Africa, a group of five people from Sierra Leone and Liberia had to abandon a fact-finding trip to the war crimes trial of former Liberian President Charles Taylor in The Hague.

• In Kenya, thousands of day laborers are out of work because produce and flowers can't be exported amid the flight cancellations. Kenya has thrown away 10 million flowers - mostly roses - since the volcano eruption. Asparagus, broccoli and green beans meant for European dinner tables are being fed to Kenyan cattle because storage facilities are filled to capacity.

• The U.S. Travel Association estimates that the ash cloud produced by the eruption has cost the U.S. economy $650 million, approximately $130 million per day. That kind of loss to the economy affects the cashflow to fund about 6,000 American jobs, the association said. Every international flight bound for the U.S. is worth an average of $450,000 in spending from travelers, which the association says pays for five jobs per flight."

March 11, 2010

As you can see from this chart the Nasdaq is still well below its all time highs. Read more here, and if you are interested in the top dot-com flops of the era you might be dissapointed that Pets.com was not #1.And for you viewing pleasure, here is Sock Puppet in action.

"The car broke down during a Motor Trend road test. Consumer Reports declared that the Yugo was "hard to recommend at any price," noting that during one assessment an oil leak dripped onto the exhaust system and filled the car with smoke. The magazine continued: "The clutch chattered. The brakes squealed. . . . The speedometer clicked. The hood became loose." There were safety concerns, too—though, miraculously, a national study ranked the Yugo as only the eighth most deadly car on the road. Somebody should have demanded a recount."

For the 3rd time in 3 years there is a new person atop the world's richest list. Carlos Slim from south of the border once again tops the new list for 2010. For all you Bill Gates fans out there he did still capture the 2nd richest spot, ahead of his friend Warren Buffett. Here is a picture of Slim with Bill Gates.

February 5, 2010

The former chief economist for the Dallas Fed, W. Michael Cox, has a interesting article on how the the availability of products has spread over time, and describes living conditions of the middle class in America today. Check out this chart.Cox writes: "It's certainly true that the past two years have been tough for many middle-class Americans. Many of them have lost jobs and homes, seen their investments decline and, more broadly, faced new uncertainties about incomes.

Families are suffering in every community – but the entire middle class under assault? Don't believe it. No hard evidence points to a general decline in living standards for the average American family. Perhaps, having it so good for so long has created expectations, some of them a bit unreasonable. Consider:

•America's middle class lives in bigger and better-equipped homes than ever before, with appliances of all kinds, air conditioning, big-screen televisions, computers, DVD players, digital cameras and so much more (see chart above, "The Spread of Products into U.S. Households").

•Nine in 10 households own a car – better equipped, more durable and more fuel efficient than any in history.

•Cell phones once cost $4,200, but they're now less than $100. Nearly every pocket and purse holds a cell phone, many now with Internet access.

•In real terms, the average family's net worth has tripled since 1970, even after the past two years of declines in housing prices and stocks.

•Tap water's free, but Americans still buy 8.6 billion gallons of bottled water a year.

•Obesity has replaced hunger as the most pressing dietary concern.

Innovation and trade continually drive down the real cost of goods and services and increase the productivity of each hour of work. As this capitalist engine churns onward, the scarcity that plagued mankind for millennia has given way to the abundance that's the foundation of today's vast middle class.

The capitalist system literally created the middle class, and the best way to maintain and improve our living standards lies in keeping it functioning at peak efficiency. Government largesse, no matter how high-minded or well-intended, isn't going to do much for the majority of middle-class families. They have to pay their own way – as always."